With respect to the mitigation of balloon risk, what is meant by an internal tail?
What will be an ideal response?
The internal tailis the first of two types of structural provisions that can be present in CMBS transactions to mitigate balloon risk. It requires the borrower to document efforts to refinance the loan within one year of the balloon maturity date. Within six months prior to the balloon maturity date, the borrower must obtain a refinancing commitment.
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Diamond Plywood, Inc., manufactures four types of plywood panels. Each product must go through the following operations: patching, grading, gluing, and baking. The time in hours required for each operation for each panel, the total capacity available for each of these operations in a given month, as well as the minimum production requirements and the profit contributions per panel are given in the following table. Based on this information, at the optimal production point what is the profit from tropical plywood panels?
A. $7,400.00
B. $3,600.00
C. $6,640.00
D. $7,950.00
Which of the following is not an element of the fraud triangle?
A. Pressure B. Opportunity C. Reliance D. Rationalization
In assessing damages for an actual loss, a court will usually grant a plaintiff
a. compensatory damages. b. nominal damages. c. punitive damages. d. liquidated damages.
A U.S. Treasury bill is currently selling at a discount basis of 0.25%. The par value of the bill is $100,000 and will mature in thirty days. What is the price of this Treasury bill?
A) $98,850.25 B) $99,830.00 C) $99,875.00 D) $99,979.17